Why are there so few tax lines for partnerships and corporations in QB when assigning expense accounts to tax form deductions?
If you tell QB that you are a sole prop., it provides Sched. C tax lines for Utilities and other incremental items. However, what deduction should I use in a partnership environment for a category like Internet access or telephones?
There is Deductions:Other, maybe this is just the catchall that everyone uses.
By tax line I'm referring to the assignment you make when you edit an expense account and assign the expense category to a tax form deduction.
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A
Allan Martin
Your first step should be to get a copy of the tax forms that you will be filling out. Look at them and ask yourself why you wasted our time with the above question.
The form 1065 that is used by partnerships has a specific line for every conceivable expense that is imaginable. That is why the 1065 forms booklet has over a trillion pages and weighs billions of pounds.
Yes we know, and if you are not going to use a tax preparation program that integrates with these tax assignments you are wasting your time making the assignments in the first place.
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Agreed, my question was poorly conceived. Let me restate in somewhat more conceptual terms: As a nonaccountant, it's not apparent why tax forms differ in terms of the line item deductions they feature. For example, the Schedule C vs the partnership return (1065). Possibly there is some basic concept I'm missing here. It would be nice to know where, for example, one would logically place deductions such as telephone or Internet access on the 1065 line items.
This can be construed as a QB question in as much as my QB expenses are so expansive while the line items are so limited on the 1065. Just wondering how real accountants handle the matching between the expense account and the limited line items.
If this question is still silly, please look past it as i'm an accounting neophyte.
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And you think accountants have some sort of inside track regarding IRS logic in tax form development?
IRS estimates at
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indicate that 'Learning about the law or the form' for the 1065 will take 28 hr., 10 min. 'Preparing the form', 48 hr., 54 min. 'Recordkeeping' will take 44 hr., 20 min and 'Copying, assembling, and sending the form to the IRS' 5 hr., 21 min. (These numbers do not include the additional fifteen plus hours required in understanding the 'schedules' submitted with the 1065). Your accountant has a good lead on the Learning and Preparing concepts, and probably has the copying and assembling down to less than IRS estimates. Still, it is somewhat more complex than can be described in a newsgroup post.
In about the same way that auto engineering specifications are relevant in traffic court.
The 'how' of the 'matching between the expense account and the limited line items' is why I pay for accounting services.
Me too. And, since I already have a full time job, I have no intention of becoming more versed in accounting. Regular meetings with my accountant assure me that my records are adequate for her use in preparing my tax returns. Of all the money I spend in running a business, the accountants fee ranks right at the top of money best spent.
A
Allan Martin
If the glove don't fit you must accquit. If there isn't a specific line then other deductions.
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